I made a losing trade this week for my Trade Alerts 2.0 service.
Before you click on my screenshot to take a look, I have this story to share with you.
A guy walk up to me this week and told me he registered for my talk 3 years ago but didn’t managed to attend it back then.
We had a short chat and we came to the topic of trading.
He then said he don’t put stop losses because the markets always hit his stop loss orders.
So it is better not to have them (the stop loss orders)
So for all of you reading out there whether you are my student, or a aspiring trader
If you look at my screenshot of results for my trade alerts,
my 2 most recent winning trades would have brought my account to be overall profitable even if I factor in only this 2 winning trades and all 5 losing trades I made this year.
2/7 win rate or 28% win rate is still possible to be overall profitable because I keep my winners and cut my losers.
If you don’t put stop loss, you’ll always tend to lost more than you planned or hope for when markets go against you.
Not having stop losses in place is like not having a safety net below you while walking on the high wire in the circus.
If you want to be successful in trading, put that safety net, put that stop loss, even if it hits many times.
Always keep your winners and cut your losers.
May the market be with you always.